CNBC’s Jim Cramer said Tuesday he does not recommend investors rush back into the market as concerns about the coronavirus persist.
“No reason to buy anything if it’s up because that’s just a sucker’s game,” Cramer said on “Squawk on the Street” as Dow futures were pointing to bounce.
Cramer’s comments come after the Dow Jones Industrial Average plunged more than 1,000 points, or 3.5%, on Monday, its biggest daily decline in two years. The S&P 500 sank almost 3.4% while the Nasdaq plummeted 3.7%.
The Dow, S&P 500 and Nasdaq did open higher Tuesday before going back into the red.
The “Mad Money” host has, for weeks, been urging investors to exercise caution around the coronavirus, cases of which are growing in countries outside of China. The spread into South Korea and Italy has escalated concerns of the outbreak’s global economic impact.
On Monday, Cramer said he believed drug companies remain attractive in the current market conditions. He also warned against leaving the market.
“Stay in. Stay in,” Cramer said Monday on “Closing Bell.” “We’re getting a comprehensive decline. I think you can start buying the staples tomorrow.”
However, Cramer said Tuesday that if those staples are racing higher to hold off. He pointed to Microsoft as an example. Shares of Microsoft were in the green after a more than 3% decline Monday.
“Microsoft has been a horse. I think Microsoft is the one, if you want to buy a stock, if you want to get started, go ahead. I would do some Microsoft,” he said. “Not if it’s up though.”
Cramer is not alone in warning investors against indiscriminately buying coronavirus-driven dips in the stock market.
“I would continue to resist, as hard as it is, to simply buy the dip,” the Allianz chief economic advisor said on “Squawk Box.”